MARKET WRAP FY18: Sensex gains 12%; PSU banks biggest losers

The year 2017-18 saw the bulls losing their steam, with the S&P BSE Sensex rising 12 per cent, compared with a 16 per cent rally in FY17. On the other hand, the Nifty50 index gained 11% in FY18, as against 18% in the previous corresponding period.

Mid-and small-caps, however, outperformed their larger peers as money – both local and foreign – poured in. While the BSE Mid-cap index gained 14%, the Small-cap index rallied 20% during FY18.

Market started losing momentum soon after the Budget on selling by FIIs as well as domestic investors weighed on Indian markets. The surprise announcement of Long Term Capital Gains (LTCG) tax caught both domestic as well as foreign investors by surprise. Rising inflation, muted macro data, dull corporate earnings and also detection of frauds in public sector banks dampened sentiment.

At the global level, faster tightening by US Federal Reserve, eruption of a trade war between the US and China and rising crude oil prices added to the woes, which analysts feel will still remain key monitorables in the next financial year.